Q: Regarding Bill's RRSP transfer to Questrade from a brokerage, the main issue of selling the investments to reinvest the funds is the tax implication. The sold RRSPs would be taxed, likely at 25%, and depending upon his RRSP contribution limit, he might not be able to reinvest the net sum. The RRSP amount would be included in his taxable income for the year of withdrawal and if large enough would "bump" him into a higher tax bracket. He would pay tax on the withdrawal at his marginal rate.
As you suggested, the transfer in kind is the only way to make this transfer without incurring any tax.
As you suggested, the transfer in kind is the only way to make this transfer without incurring any tax.